CarSpring

CarSpring positioned itself as an online marketplace aiming to disrupt the UK's used car market by creating a more transparent and convenient process for buyers and sellers. Founded in March 2015 by former McKinsey & Company consultants Maximilian Vollenbroich and Dr. Peter Baumgart, the company was notably backed by the German startup incubator Rocket Internet. The founders' experience in strategy consulting, including Vollenbroich's detailed research into the European used car market, informed the company's direction. Dr. Baumgart also brought online marketing expertise from his time at the dating agency eDarling.

The business operated by connecting private sellers with potential buyers through its online platform, initially launching in London. Its model was to serve as a 'matchmaker' or 'car concierge' rather than a traditional dealership, guiding customers through the entire process online. CarSpring's revenue was generated by taking a fixed fee of 5-10% based on the car's value upon a successful sale. The company differentiated itself by not only facilitating the transaction but also by holding its own inventory, a practice that set it apart from some other online car dealers at the time. To build consumer trust in online car purchasing, a significant hurdle in the industry, CarSpring implemented several key features. Every vehicle listed underwent a meticulous, multi-stage inspection by a qualified mechanic. For buyers, the service included home delivery, a 14-day test drive with a refund guarantee, a complimentary six-month warranty, and fixed, no-haggle pricing. For sellers, CarSpring offered a free inspection, valuation, and listing, with a promise to purchase the car themselves if it did not sell within 30 days. The company also arranged financing for buyers through a partnership with the broker Zuto.

CarSpring showed early promise, securing a $3 million funding round shortly after its launch and a subsequent £5 million Series B round in August 2017, with investors including Rocket Internet and Channel 4's Commercial Growth Fund. However, by late 2017, signs of trouble emerged. A planned €5 million financing round reportedly fell through amid strategic disagreements between the founders and investors. Public records indicated that the founders had resigned, and the company's website stopped listing vehicles for sale. Ultimately, after a loss of investment, the UK site ceased operations.

Keywords: online car marketplace, used car sales, e-commerce automotive, vehicle inspection, car financing, home delivery cars, Rocket Internet, Maximilian Vollenbroich, Peter Baumgart, UK automotive market, car concierge service, fixed price cars, online car dealership, venture capital, automotive technology, digital car retail, used vehicle platform, car sales disruption, peer-to-peer car sales, Carspring UK